https://www.taxtmi.com/caselaws?id=191853 Surplus from sale of plots carved out of a tea estate was held not to be business income or an adventure in the nature of trade. Applying the test under section 2(4) of the Indian Income-tax Act, 1922, the decisive factor was the intention at acquisition and the surrounding circumstances of sale. The estate had been bought and used for tea cultivation, with no scheme to acquire land for development and resale at a profit. Later sales arose because holding the property had become uneconomical and liabilities had to be liquidated, while development activity was undertaken by a separate company. The transaction was treated as capital realisation and the surplus was not chargeable to tax. en-us Wed, 28 Jun 1961 00:00:00 +0530 Thu, 27 Apr 2017 16:56:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191853 Surplus from sale of plots carved out of a tea estate was held not to be business income or an adventure in the nature of trade. Applying the test under section 2(4) of the Indian Income-tax Act, 1922, the decisive factor was the intention at acquisition and the surrounding circumstances of sale. The estate had been bought and used for tea cultivation, with no scheme to acquire land for development and resale at a profit. Later sales arose because holding the property had become uneconomical and liabilities had to be liquidated, while development activity was undertaken by a separate company. The transaction was treated as capital realisation and the surplus was not chargeable to tax. Case-Laws Income Tax Wed, 28 Jun 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191853